Local Government Finance

Debate between Lord Pickles and James Morris

Wednesday 19th December 2012 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

While the Secretary of State is dispensing advice, what advice would he give to council tax payers in Halesowen, who are seeing Dudley council spending thousands of pounds on a consultation exercise that calls for council tax rises of up to 4.6%?

[Mr Pickles]

I will watch the council’s progress with interest and our thoughts will be with the council tax payers at the ballot.

Amendment of the Law

Debate between Lord Pickles and James Morris

Monday 28th March 2011 Commons Chamber

[Mr Pickles]

My right hon. Friend, as always in these matters, is absolutely correct. There is sometimes a fallacy, which the Opposition assume, that a pound cut in grant means a pound cut in services, but there are clearly better ways of doing such things.

Last June’s emergency Budget started a rescue mission. It preserved the UK’s triple A rating and helped to keep interest rates stable. This Budget shows that we are moving from rescue to far-reaching reform. It is a Budget for a strong and stable economy, marking our progress towards eliminating the structural deficit. It is a Budget for growth, rebalancing the economy away from over-reliance on the public sector towards long-term, sustainable growth based on export and investments. This is a Budget for fairness, lightening the burden on some 23 million taxpayers by lifting the personal income tax allowance.

In the past, there may have been an impression that the people in Whitehall who were responsible for the economy sat in the Treasury or in the Department for Business. Today, every part of Government has a role to play in helping to keep business thriving. I am proud of my Department’s reputation as one of the most deregulating Departments in Whitehall. The Communities Department is central to economic activity, and were it not for the cost of sign writers and stationery, I would rename it the Department for Communities, Growth and Local Government. Over the course of the past 10 months, we have cut the red tape on councils; called time on the Audit Commission’s clipboard inspectors; unravelled Labour’s home information packs; scuppered Labour’s ports tax; scrapped the Whitehall density targets for housing, which encouraged garden grabbing and a glut of flats; and binned the planning rules that encouraged councils to hike up parking charges in town centres. Today, we are going further still to create the conditions for growth.

[James Morris (Halesowen and Rowley Regis) (Con)]

The Secretary of State talked about rebalancing the economy. One of the most shocking statistics that the Chancellor quoted in his address was that in the west midlands, during a time of growth, we saw a 3% decline in private sector jobs growth. In areas such as the black country, it is absolutely essential that we deregulate and find as many opportunities as possible to drive entrepreneurship, small business and economic growth.

[Mr Pickles]

My hon. Friend makes a very reasonable point. Part of the problem is that we are now having to rebalance the economy.

Last week’s Budget was driven by an absolute certainty held by Conservative Members—that Governments can print money but only businesses can make money. We do not succeed as an economy by giving bean counters the whip hand over wealth creators. Governments need to listen to entrepreneurs about how to unlock growth.

I do not want to be terribly unpleasant about the regional development agencies, but perhaps I should on just this one occasion. They were fantastic at passing public grants from one part of the public sector to another, but very poor at creating private sector jobs and sustainable growth. After a decade of regional development agencies—my hon. Friend the Member for Halesowen and Rowley Regis (James Morris) gave figures for the midlands—the public sector still accounts for more than a quarter of jobs in the north-east, compared with less than a fifth in the south-east of England, and the number of private sector jobs grew half as fast in the north-east as the national average between 2003 and 2008.

Local Government Finance

Debate between Lord Pickles and James Morris

Wednesday 9th February 2011 Commons Chamber

[Mr Pickles]

I will give way in a few moments.

The phasing of the settlement will be challenging. Councils can choose how they respond. Some have chosen to wring their hands and say that it is all too hard, or to play politics with front-line services. Others have chosen to step up and to protect vital local services, reducing every trace of waste, protecting the most vulnerable and reforming services to deliver better results for less.

[James Morris (Halesowen and Rowley Regis) (Con)]

rose—

Local Government Finance

Debate between Lord Pickles and James Morris

Monday 13th December 2010 Commons Chamber

[Mr Pickles]

I wish to make it absolutely clear that obviously, authorities that are more dependent on the grant will feel the effects of any reduction. We have moved the relative needs figure to 83%, and introduced the banded floors and the transitional grant, to protect those authorities. Had we not taken those decisions, and had we applied the system that the Labour party did, the effects on those communities would indeed have been great.

[James Morris (Halesowen and Rowley Regis) (Con)]

I welcome the Secretary of State’s announcement today. Is it not the case that across the country, there are lots of examples of local authorities working in partnership to reduce costs, sometimes across political divides? Will he outline how he can encourage local authorities along the line of more collaborative behaviour?

[Mr Pickles]

I am pleased to report that a number of authorities have gone some considerable way to find savings that can be made. We have already talked about Coventry, and Hammersmith and Fulham, Kensington and Chelsea and Westminster have started to join together to improve things. Birmingham has managed to save £130 million by outsourcing and Suffolk £40 million by divesting services. In the west midlands, asset rationalisation has achieved a £640 million saving. There is a very long list, which I shall not read out, but it is immensely important that authorities recognise that they can protect front-line services by shifting resources from the centre to the most vulnerable.

Audit Commission

Debate between Lord Pickles and James Morris

Tuesday 7th September 2010 Commons Chamber

[Mr Pickles]

I note that the hon. Gentleman has conceded the point, although a little reluctantly and perhaps not with the greatest grace, that the auditor was a private sector auditor. That clearly demonstrates that the private sector can be trusted as auditors. The majority of those dealing with industry are private sector auditors, and that is the best guarantee of probity. We will ensure that the National Audit Office and the professions oversee this. There is a distinction, and it is this: we trust local authorities; Labour Members clearly do not.

[James Morris (Halesowen and Rowley Regis) (Con)]

Does the Secretary of State agree that under the previous Government, the Audit Commission became increasingly an agent of central control? The decision that he has rightly made sends a very important signal that this coalition Government have confidence in local government and in driving through a decentralisation agenda. That is why I welcome his decision—it is the beginning of a decentralisation path that I wholly support.

[Mr Pickles]

I am most grateful to my hon. Friend for his support, and he is quite right. That is one reason why I believe the Audit Commission, despite all its defects, recognised that the time had come to acknowledge that the fifth-largest auditing function in the country would be better, safer and regulated more safely in the private sector.